Tools
Tools
Hagiu, Andrei
, Jullien, Bruno and Wright, Julian
(2020)
Creating platforms by hosting rivals.
Management Science, vol. 66 (n° 7).
pp. 2801-3294.
This is the latest version of this item.
Preview |
Text
Download (498kB) | Preview |
Abstract
We explore conditions under which a multiproduct firm can profitably turn itself into a platform by "hosting rivals," i.e. by inviting rivals to sell products or services on top of its core product.
Hosting eliminates the additional shopping costs to consumers of buying a specialist rival's competing version of the multiproduct firm's non-core product. On the one hand, this makes it easier for the rival to compete on the non-core product. On the other hand, hosting turns the rival from a pure competitor into a complementor: the value added by its product now helps raise consumer demand for the multi-product firm's core product. As a result, hosting can be both unilaterally profitable for the multi-product firm and jointly profitable for both firms.
| Item Type: | Article |
|---|---|
| Language: | English |
| Date: | July 2020 |
| Refereed: | Yes |
| Uncontrolled Keywords: | multi-sided platforms, shopping costs, bundling, competition, complementarity. |
| JEL Classification: | D4 - Market Structure and Pricing L1 - Market Structure, Firm Strategy, and Market Performance L5 - Regulation and Industrial Policy |
| Subjects: | B- ECONOMIE ET FINANCE |
| Divisions: | TSE-R (Toulouse) |
| Site: | UT1 |
| Date Deposited: | 20 Apr 2020 13:09 |
| Last Modified: | 16 Sep 2021 08:26 |
| OAI Identifier: | oai:tse-fr.eu:122894 |
| URI: | https://publications.ut-capitole.fr/id/eprint/32281 |
Available Versions of this Item
-
Creating platforms by hosting rivals. (deposited 30 Nov 2018 09:15)
- Creating platforms by hosting rivals. (deposited 20 Apr 2020 13:09) [Currently Displayed]
